Swedish Boliden and mining company Votorantim S.A. have entered into a definitive agreement the pursuant to which Boliden will acquire all of Votorantim's shares in Nexa Resources S.A. for around $1.31 billion.
The deal follows discussions that were disclosed earlier this year.
Nexa has operations in Brazil and Peru and accounts for around 4% of global zinc production, according to WSJ.
"In addition to positioning Boliden as one of the leading zinc providers in the world, the transaction will reinforce our standing as a globally important base metal producer and bring a healthy addition to our precious metal business with a large increase to our output of silver in concentrate. Furthermore, Boliden's and Nexa's combined project portfolio will be highly attractive and present a solid foundation for future growth. Also, I am very confident that entering two highly attractive mining and smelting jurisdictions in Latin America together with an experienced partner, who will also become a significant Boliden owner, will bring benefits to internal and external stakeholders both short-term and long-term", commented Mikael Staffas, President and CEO, Boliden, in a press statement.
The deal will position Boliden as one of the global leaders in zinc mining and smelting, and reinforcing Boliden's standing within both base and precious metals.
The transaction will create a geographically diversified and resilient base and precious metal business with significant scale and growth upside, Boliden adds.
